Letter from the President Regarding an Alternative Pay Plan

TO THE CONGRESS OF THE UNITED STATES:

The law authorizes me to implement an alternative pay plan for locality pay increases for civilian Federal employees covered by the General Schedule and certain other pay systems in January 2011, if I view the adjustments that would otherwise take effect as inappropriate due to “national emergency or serious economic conditions affecting the general welfare.”  Our country faces serious economic conditions affecting the general welfare.  As the economic recovery continues, the time has come to put our Nation back on a sustainable fiscal course, an effort that requires tough choices and shared sacrifice.  Accordingly, I have determined that it is appropriate to exercise my statutory alternative plan authority under 5 U.S.C. 5304a to set alternative January 2011 locality pay rates.  This decision will not materially affect our ability to attract and retain a well qualified Federal workforce.

Under the authority of section 5304a of title 5, United States Code, I have determined that the current locality pay percentages in Schedule 9 of Executive Order 13525 of December 23, 2009, shall not increase from their 2010 levels.  Pursuant to the Non Foreign Area Retirement Equity Assurance Act of 2009 (sections 1911 1919, Public Law 111 84), I am also establishing applicable 2011 locality pay rates for Alaska and Hawaii that are based on 2010 locality pay levels.

The locality pay rates established in 2010, and continued in 2011 under this alternative plan, are shown in the attachment.

BARACK OBAMA

THE WHITE HOUSE,
November 30, 2010.